Sharps Technology Secures SC Asset Purchase Exclusivity with $1 Million Escrow Deposit
Sharps Technology has secured exclusive rights to purchase InjectEZ assets with a $1 million escrow deposit. The acquisition includes a five-year, $200 million syringe sales agreement with Nephron Pharmaceuticals. The transaction is expected to close within 60 days, with product shipments slated to begin in Q2 2025. The South Carolina facility will produce pharmaceutical-grade prefillable syringes, with projected revenue exceeding $35 million in the first 12 months. The manufacturing plan includes three phases, with the final phase expected to be completed by October 2027. Sharps is also collaborating with Fortune 500 medical distributors and pharmaceutical companies to expand its market reach.
- Secured $1 million escrow deposit for exclusive rights to purchase InjectEZ assets.
- Five-year, $200 million syringe sales agreement with Nephron Pharmaceuticals.
- Expected closing of the transaction within 60 days.
- Projected revenue exceeding $35 million in the first 12 months of sales.
- Manufacturing facility on track to begin product deliveries in Q2 2025.
- Collaboration with Fortune 500 medical distributors and pharmaceutical companies.
- First dedicated polymer prefillable syringe manufacturing plant in North America.
- No assurance of transaction closing within the expected 60 days.
- Potential delays in product shipments if facility upgrades are not completed on time.
- Risk of not meeting projected revenue targets.
- Dependence on successful qualification and acceptance of new products in the market.
Insights
Sharps Technology has made a strategic move by transferring
From a financial perspective, the anticipated
Given the potential market penetration and revenue forecast, this acquisition could enhance shareholder value. The deal showcases Sharps' strategic foresight in securing a unique market position in North America.
The acquisition of InjectEZ assets positions Sharps Technology as a key player in the North American PFS industry. The dedicated manufacturing plant for polymer prefillable syringes is a significant competitive advantage. With the first phase of manufacturing implementation expected to start soon after the closing, Sharps is set to capitalize on the growing demand for PFS in the pharmaceutical and medical sectors.
The strategic partnerships with Fortune 500 medical product distributors and leading pharma industry players further bolster Sharps' market reach. The inclusion of GLP-1 market products indicates Sharps' adaptability to market trends and demand. While the long-term prospects appear promising, investors should monitor the timely execution of the phases and potential market adoption challenges.
Overall, the market expansion and strategic alliances could provide Sharps with significant growth opportunities, making it a stock to watch for potential long-term gains.
The acquisition of the InjectEZ assets allows Sharps Technology to introduce advanced copolymer prefillable syringes to the market. This innovation could improve drug storage stability and patient safety, addressing a critical need in the healthcare industry. The projected revenue and market penetration indicate a successful alignment with current healthcare demands, especially in the rapidly expanding GLP-1 market.
The phased manufacturing plan and collaboration with healthcare customers for sample trials and qualification work demonstrate Sharps' commitment to quality and market readiness. Investors should note the potential for increased demand for better-performing syringes, which could drive revenue growth and market leadership.
This acquisition not only enhances Sharps' product portfolio but also reinforces its position as an innovator in the medical device and pharmaceutical packaging sectors.
InjectEZ acquisition establishing Sharps position in the prefillable syringe (PFS) industry in the U.S. has progressed with the payment of
Closing on the Asset Purchase and the Syringe Sales Agreement, for product orders totaling over
Based on the most likely timeframe, product shipments from the SC facility are planned to begin by Q2 of 2025.
NEW YORK, June 05, 2024 (GLOBE NEWSWIRE) -- Sharps Technology, Inc., (NASDAQ: “STSS” and “STSSW”), an innovative medical device and pharmaceutical packaging company offering patented, best-in-class syringe products, has transferred a
“The revised deal better supports both Sharps and Nephron, and we are excited that the deposit has been made. We are working toward the final closing of the agreements over the next 60 days. The signed deal will also allow for new commercial opportunities that will be announced after the closing of the purchase of the InjectEZ operation,” commented Robert Hayes, Sharps Technology CEO. “There’s a lot of work ahead of us, but with the deposit in place, Sharps has been given access to the facility to begin key start-up activities. The Sharps team will continue its hard work behind the scenes, with contracted industry resources, to expedite our manufacturing implementation plan and get our product qualified for shipment to our customers as quickly as possible.”
Once the asset acquisition is closed, expected within 60 days, Sharps intends to immediately ramp-up the first phase of its manufacturing implementation plan and bring a new strategic partner into the fold. The initial phase of the plan includes the final facility buildout and upgrades to support the manufacture of pharmaceutical grade COC prefillable syringes on three state-of-the-art production lines. Product from the first line are expected to be qualified to ship early in the second quarter of 2025, and all three lines are expected to produce saleable product by the fourth quarter of 2025. The second and third manufacturing phases are planned to be completed by October 2027, and the three manufacturing expansions will be completed within the facility as it exists today.
The five-year,
About Sharps Technology:
Sharps Technology is an innovative medical device and pharmaceutical packaging company offering patented, best-in-class smart-safety syringe products to the healthcare industry. The Company’s product lines focus on providing ultra-low waste capabilities, that incorporate syringe technologies that use both passive and active safety features. Sharps also offers products that are designed with specialized copolymer technology to support the prefillable syringe market segment. The Company has a manufacturing facility in Hungary and has partnered with Nephron Pharmaceuticals to expand its manufacturing capacity in the U.S. For additional information, please visit www.sharpstechnology.com.
Forward-Looking Statements:
This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” “poised” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity, and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance, or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Investor Relations:
Dave Gentry
RedChip Companies, Inc.
1-800-RED-CHIP (733-2447)
Or 407-644-4256
STSS@redchip.com
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